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Drew Chow has an annual salary of $110,250. He is married with no dependents. The married exemption for his state is $4,000. He pays $2.656.25 in state income taxes. What is the state income tax rate?​
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42 votes
42 votes
Drew Chow has an annual salary of $110,250. He is married with no dependents. The married exemption for his state is $4,000. He pays $2.656.25 in state income taxes. What is the state income tax rate?​

User Corinne
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1 Answer

19 votes
19 votes

Answer: 2.5%

Step-by-step explanation:

Drew salary is $110,250 and he gets a married exception of $4,000.

This reduces the taxable income to:

= 110,250 - 4,000

= $106,250

He pays $2,656.25 in taxes on that taxable income so the income tax rate can be found as:

106,250 * tax rate = 2,656.25

Tax rate = 2,656.25 / 106,250

= 2.5%

User MorganIsBatman
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3.2k points
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